These days, it is all too easy for inexperienced buyers to become obsessed with getting the “best deal”. I’m talking about the “weekend warrior” buyer- the one who watches countless hours of HGTV shows that make it seem plausible that someone could seek out, purchase, remodel and flip a home for 25% profit in 30 minutes, or less. The “Hey, I bet I could do that, too!” type of buyer…
There are lots of ways to cut costs when house-hunting. Buying fixers, frontier homes or former meth-labs has always been popular for those hoping to save money, and these days, short-sales and foreclosed (REO) homes are whetting the appetites of aspiring “investors” all across the country. Certainly, there are good deals out there to be found, and there are smart ways a savvy buyer can save money. The seemingly-endless series of books, seminars, and TV shows based on that premise can attest to that. However, in my experience as a real estate professional I have witnessed, first-hand, more than a few common mistakes that I think are worth pointing out. This is for those buyers AND their agents, to whom they should be paying more attention!
#1 You don’t actually know how to fix stuff:
Do you know how to re-wire a circuit breaker? Have you actually done it, or just seen it on TV? If water starts shooting across the floor after you smash the old toilet with a sledgehammer, do you know how to turn it off? Do you know how to pull up the carpet and lay down that fancy tile flooring your wife picked out at Home Depot last weekend? No? Then…
#2 You don’t have the money to get things fixed:
You don’t have to be a handy-man to buy a fixer. However, you definitely need deep pockets with plenty of cash in them. Fixing up a house can cost a lot of money. I mean a LOT of money. Do you know how much a toilet costs? How about a window… or a new heating system? Do you know how much it costs to pay the people who do know how to do that stuff? I’ve met electricians who charged by the second, roofers that actually preferred to be paid in kidneys, and plumbers whose invoices technically qualified as Crimes Against Humanity…
#3 You don’t have the time to get things fixed:
So, let’s say you have the knowledge, the money, or some combination thereof that you determine will make this a workable scenario. Do you have the time? I was talking with a friend of mine recently about this. He’s a professional home inspector, so he definitely has the knowledge and the money required. However, he was complaining about how he’d been working on a bathroom remodel for an entire year. A YEAR! His intentions were pure and his plan was solid… but time just kept getting away from him. Think about that for a minute. A whole year of planning, anxiety, struggling to find the time… NOT being able to use the bathroom… Now think about trying to fix up a whole house. Make no mistake, any rehab project is a serious time-suck, but a whole house is a full-time job, and then some!
#4 You can’t get the bank to actually give you the loan:
These days, banks are getting increasingly antsy about loans, especially for fixers. Remember, the house has to appraise for the amount you’re paying for it, or at least the amount you’re financing. If the house is falling apart, the appraisal will reflect that. If the bank determines that the house is a potential liability, you’d better be prepared to provide solid answers to the above questions. If you can’t, the bank is likely to reject your application on the grounds that you’ll be too likely to get in there and find yourself over your head. The last thing they want is to encourage somebody to default on a loan because they end up overwhelmed by the staggering realities of fixing up a crack-house.
#5 Your work prices you above the market:
If you think you can manage the cost, effort, and time required for repairs, be careful not to price your new Valhalla out of the local market! Some clients of mine bought a house in Seattle back in early 2005. It was a nice, older home, in a pretty good area. They spent the next 6 months transforming it into a modern masterpiece, replete with stainless appliances, additional bedrooms and bathrooms, heated floors and dormer windows in the master bedroom. They’d turned a $400k house into a $750k house. The problem was that the home was on a busy street, and the surrounding homes topped out in the mid-$600 range. This home, in any number of other locations, could easily have sold for the $750 they wanted… but the present location brought the value down. They ended up selling it after several months for much less than their original asking price, simply because they had spent too much money in the first place. A couple of years later, I later sold a similar fixer just a few blocks up the same street. Having seen this movie before, I went out of my way to warn my client about the dangers of pricing herself out of the market by over-doing the remodel. However, she knew a lot more than I did about flipping houses in Seattle. She was from the East Coast, after all. Yada-yada-yada… same beer, different bar. She lost money.
It is a common misconception that refinancing is only applicable to homes that are not a mobile home or manufactured home. The truth is even these types of homes are available for loan refinancing. If you are wanting to consolidate debt, would like to have a better mortgage interest rate or a more feasible loan terms, or perhaps need some money for a car or college tuition – refinancing your manufactured or mobile home may be a preferred option for you.
A manufactured home refinance is structured by you paying off your current loan and simply taking out a new loan with more favorable terms. Favorable could mean anything from a better interest rate which results in lower monthly payments or a shorter term of repayment.
It does not matter whether your mobile home is located on your own private land or if you are renting space in a mobile home park or community. Refinancing can be based upon the inclusion of land in the appraisal value or the exclusion of the same. You will need to check with your lender in the state of your residency to find out what the laws and regulations are that govern the refinancing of your mobile home.
When you refinance you will have to pay closing costs just as when you first purchased your home. Often a lender will allow you to roll the closing costs into mortgage to avoid paying them out of pocket. Keep in mind that when you roll over the closing costs into the mortgage you will be interest on those closing costs which means that in the end you will be paying more than if you just paid them up front in cash.
As with refinancing of traditional homes, you will be able to pay a fee upfront to your lender to purchase points to bring down your interest rate. Typically, one point equals a one percent reduction of the loan interest rate. So if you have a loan for $50,000 at an 8.5% interest rate and you wanted to buy points, one point would reduce your interest rate to 7.5%. If you are considering purchasing points, you need to make sure you will own the property long enough to retrieve the money you spent to purchase the interest buy-down points.
Because of the quantity of available sites and opinions, this can be a wild goose chase at times. We’ve made out site a comprehensive resource for you to find out what you require on refinancing your mortgage and know how valuable a one-stop resource depot can be. See below for more information on Mortgage Refinancing.
There are a lot of different things in life that can derail happiness. The happiness train can drop hard when finances get difficult, and in some cases vanish. With the hard economic times that are coming through the everyday life of most people, it’s hard to imagine the good times that are sure to follow the rain that comes through the economic hardships of these modern times. If you or someone you know is struggling to get through the hard times today, there is hope in the form of a variety of different financial options. The following 3 tips to understand how cash depot loans can really change the shape of your financial future:
Credit Rating – People that have worked very hard to get their credit score better are going to have a hard time when the bills come due and they don’t have enough to cover them. If you’re struggling to get your bills paid and you don’t want to miss a payment or be late on the due date, make sure that you move forward with an option that will assist you with your credit score, getting bills paid on time. Remember, by getting a cash depot loan, you can stay current with your bills in the short term, and make sure your credit score is not dropping quickly.
Peace of Mind – Millions of people suffer from anxiety, depression, and stress, mostly due to financial matters. If that sounds like you, consider the greater good that comes from getting quick money to pay your rent, bills, or any loans that you might have. You can’t go wrong here, and if you’re trying to remove the anxieties of life, especially when a curveball gets thrown at you in these modern days.
Easy Access – It doesn’t take a lot to get this type of loan. As long as you have a checking account, you can get yourself several thousand dollars and move forward to paying whatever it is that is due. You will be able to pass along through the next few months of bills without having to worry about anything. You’ll also be able to pay back the loan and improve your credit score in the process. As long as you pay back your loan you are in good favor, and you’ll be able to avoid the maladies that come along with being late on any sort of payment plan you’re on.
Aside from the aforementioned, you have to be on top of paying your cash depot loan. Visiting a location and getting the money in your hands is one thing, but you have to pay it back within the allotted time. Short term lending should be done responsibly, don’t take it for granted and make sure you don’t ruin your financial situation, or make it any worse than you need. In order to avoid penalties, distress and so much more you just need to make sure to pay things back within the appropriate time frame. Make sure you explore your options and only get the correct amount of money and not too much more.
If your car insurance is due for renewal and you are considering buying another policy then this article will provide you with important facts that you should know about. Car insurance policies are getting increasingly expensive and you should do all that you can to reduce your costs. How much you have to pay for your car insurance is dictated by a variety of factors as they apply to you and your vehicle.
In this article we will examine coverage limits, your age, gender and marital status, your location and insuring other household members. All of these factors will have a great influence on how much you will have to pay for your policy.
Coverage limits are generally dictated by the price that you are willing to pay for your insurance. A higher level of coverage will generally result in higher premiums. The best way to find a good value policy is to comparison shop. Nowadays it is generally accepted that the best way to do this is by using a car insurance comparison website.
Your age, gender and marital status will have a great effect on the auto insurance rates that you are offered. Insurers rate drivers using a variety of criteria, if you are a young single male driver you will usually have to pay higher rates. If you are a middle-aged female married driver then your rates will be lower. Insurers calculate the best car insurance rates for you by comparing levels of risk. Those groups which are statistically more likely to be involved in an accident have to pay correspondingly higher rates.
Location plays an important part in deciding how much your premiums will cost. Drivers who live in an urban environment will usually pay more than those from a rural area. This is because drivers who live in cities and heavily populated areas are more likely to be involved in an accident, or to have their car stolen or vandalized. Insurers generally offer better rates if you’re able to demonstrate that you keep your vehicle in a garage at night. You may also be able to improve the security arrangements of your automobile by fitting an alarm, immobilizer and steering wheel lock.
Insuring other household members will have an influence on the cost of your policy and the best car insurance rates that you offered. If you have teenage family members living with you and they are added to your policy, then your costs will increase. This may still work out cheaper than if your teenage driver were to have a separate policy in their own name.
In conclusion, there are a variety of different factors which can affect your ability to be offered the best insurance rates. Some of these are coverage limits, how old you are, whether you are male or female and whether you are married or single. Your rates will also be affected by the area where you live and whether other household members are included in your policy.